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Bank vs. Loan Shark: Why Banks Win

There are many ways to get your hands on money, with some being better opportunities than others.

As you compare banks and loan sharks, you’ll soon find that banks win out. And here is why:

Reliability and reputation. When you do business with a loan shark, you never know what you are getting into. They don’t have to adhere to any regulations or laws, meaning that the relationship can be completely one-sided.

With a bank, however, you know you are getting involved with a reliable and reputable institution that has your best interests in mind.

Reasonable interest rate. While you may not be happy with the interest rate offered by a bank, it’s safe to assume that it’s much better than what you would get with a loan shark.

Subsequently, the actual cost of your loan is less when you turn to a bank.

No shady tactics. Believe it or not, a relationship with a loan shark often goes beyond a financial arrangement. If you don’t pay the money on time, for instance, you could begin to receive threatening phone calls. Is that something you want to deal with? This is not a risk you should take, as it puts you in an awkward and often dangerous personal position.

Don’t hesitate to learn more about the benefits of borrowing from a bank. Once you do this you will have a better idea of why it makes sense to avoid a loan shark at all costs.

What do you think about this? Do you have any other reasons why a bank is a better choice than a loan shark?

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What Can You Do?

We're fighting for healthy lending! It takes both demand and supply to create a marketplace. You can do your part by reducing demand for predatory lending by learning more about good loan practices, and how you should shop for loans.